Transformations  in
Business & Economics

IMPACT OF CORPORATE GOVERNANCE ABILITY ON CAPITAL GAINS IN MIXED OWNERSHIP ENTERPRISES
Yunchao Du, Renxiang Wang

ABSTRACT. The direction of the mixed ownership reform is changing from managed assets to managed capital. Perfecting the corporate governance structure plays an important role in promoting the reform of mixed ownership, and then improving the state-owned and private capital returns. To explore the existence of current, long-term and structural impact of corporate governance capacity of mixed-ownership enterprises on capital gains, the index system for measuring corporate governance ability of mixed-ownership enterprises was constructed from comprehensive index, internal and external governance ability index. The influencing mechanism was analysed by using the data of 92 mixed-ownership enterprises in China from 2014 to 2015. Results show that the improvement of corporate governance ability can promote Tobin's Q and return on assets (ROA) of mixed-ownership enterprises, and both have long-term but different effects. Internal and external governance ability both has a positive impact on Tobin's Q and ROA currently and in long-term. External governance ability has a more significant impact on Tobin's Q. Structural impact of internal governance ability on capital gains is different. Both governance ability of the board of directors and management have a positive effect on capital gains. Governance ability of the board of shareholders does not contribute to capital gains, while governance ability of the board of supervisors is not related to capital gains. In addition, corporate governance ability of mixed-ownership enterprises in emerging industries has a stronger impact on capital gains than traditional industries. The conclusions obtained in the study provide theoretical reference and decision basis for the improvement of corporate governance ability and capital gains of mixed-ownership enterprises.

KEYWORDS:  mixed ownership enterprise, corporate governance ability, capital gains.

JEL classification:  G34, G32, P21, D22, C12.